JW’s Financial Coaching Podcast JW’s Financial Coaching Podcast-A show devoted to answering your personal financial questions and covering current events in personal finance. Giving people a new perspective on their money!

January 24, 2017  
00:0000:00
  • In what ways debt free people think differently about money
  • The demographics of those who are debt free
  • Why giving plays a big role in those who are debt free
  • How you can help confirm my observations
  • Quote of the lesson from Wayne Dyer

 

When I first got into paying attention to my finances one of the first books I ready was the classic Millionaire Next Door by Dr. Tom Stanley. What I loved particularly about this book was the research Dr. Stanley did on real life millionaires. Not just athletes and entertainers. You really got insight into how millionaires think about earning, saving, and spending money.

Since then I’ve read other books by Tom Corley and Steve Siebold on how the wealthy think vs. the non-wealthy. Also there are books and research out there on how entrepreneurs think vs. traditional employees.

But today we are going to focus on how debt free people think. I focus on being debt free because that’s how Lisa and I live when it comes to our finances and after interviewing those who are debt free and coached with people on becoming debt free I’ve come to the realization that in general they seem to be doing better with money than most.

On today’s lesson I’m sharing some observations I have had about debt free people and how they view money. In addition I also share how I’m doing some research to help confirm these observations and how you can help.

The good news about looking at those who are debt free is that pretty much anyone can fall under that heading. You can be young or old, make a great income or make a little income, or be married or single. They can also have a lot of children but also have none. They can live in any part of the country, be of any race, ethnicity, or religion. But to me there are four main areas where debt free people think differently then those who are not.

  1. They have an idea of where there money is going
  2. They are prepared for emergencies
  3. They are continuous learners
  4. They are big givers

Debt Free people know where their money is going by having a budget they review and stick to each month. They also have financial goals and review them at least once a year to see how if they have accomplished those goals. They have a great sense of where their money is going each month which allows them to have a knowledge of how each financial decision they make impacts their finances.

They are also prepared for emergencies. Debt free people face fewer true financial emergencies because they are prepared for them to happen. If an unexpected expense does occur they simply have the money in their emergency fund to cover the cost. Know there is a chick or the egg debate on which comes first, having an emergency fund or becoming debt free, but those who are debt free very often have money in an emergency fund.

Continuous learning is also a big part of the thought process of those who are debt free. Whether it is books, podcasts, blogs or other medium, those who are debt free are always those who continue to learn in different areas of money. These areas might include thinks such as investing in stocks, investing in real estate, starting a small business, how to make more passive income, ways to cut your cable or grocery bill, better ways to budget, or how to cut expenses to pay off their mortgage sooner.

Finally giving plays a huge role in the lives of those who are debt free. They don’t become debt free just to be able to save and spend more on themselves. They do it so that they can then bless others in causes that they believe in.

There are a lot more ways that debt free people think differently about money but those are for another podcast. But those are my observations and would you be willing to help prove out these observations?

I’m currently conducting research for my next book project and want to know your thoughts on debt and money.

It’s a 9 question multiple choice survey and should take only a few minutes to complete. Please consider taking it no matter if you are debt free or not. Your opinions matter and will help validate the research either way.

The survey is 100% anonymous but depending on your answers you might be contacted for a followup survey as well which we’ll need your email for.

Please visit JWFinancialCoaching.com/Survey to participate and thank you in advance for your help. I’ll be using the research for at least a future upcoming webinar and hopefully can use the data for a new book release.

Other resources mentioned in the show:

Today's quote of the lesson is brought to you by Audible.com

“If you change the way you look at things, the things you look at change." ~ Wayne Dyer

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

January 16, 2017  
00:0000:00
  • Why goals work
  • How to create SMART goals
  • The power of writing your goals down
  • Where to determine what your goals are in the first place
  • Quote of the lesson from Earl Nightingale

Goal setting is something we’ve discussed on the show before around this time of the year. It’s a good time to talk about financial goals because usually at the end of the year most of us are reflecting on what we’ve accomplished the previous year and look ahead to what lies ahead in the next one.

With that being said you might not be a big goal setter and you start to roll your eyes whenever you read or hear someone talk about goals. But I believe in setting goals because for me they have

  • Helped Lisa and I achieve what we’ve wanted to financially
  • Allowed us to dream together
  • Propel us to things we didn’t think were possible!

But goals aren’t magic, you still have to do the work to achieve them. A lot of times we don’t reach our goals because they are too vague. Goals like I want to do better with money, I want to save more, I want to spend less, contribute more to retirement, reduce debt, aren’t likely to get achieved.

So instead of doing that this year, today we discuss how to create goals that are S.M.A.R.T. I didn’t come up with the acronym but making S.M.A.R.T goals for our family has really helped out.

S-Specific. Goals needs to be precise and leave no doubt. Instead of saying “I want to lower my spending in 2016” change it to “I want to lower my spending on groceries, eating out, and utilities in 2016”

M-Measurable. Goals need to be quantifiable to succeed. Instead of saying “I want to save more in 2016” change that to “I want to save $100 a paycheck in 2016.”

A-Actionable. This is always a tricky one. You have to create a goal that is reachable but also a stretch. If you make it too easy, you’ll more than likely procrastinate on it and then barely achieve your low goal.

R-Realistic-You have to be willing to do the work. If your goal is to pay off all your debt his year, but to do that you’ll have to work 100 hours a week, live in the dark, and eat two meals a day you won’t accomplish that go. Because you won’t see it through. There is a level of sacrifice of either time, energy, or money when it comes to reaching your goals however.

T-Timeline. Expected results need to have a timeline. We don’t like to have deadlines but for most of us we work better when we do. Instead of saying “I want to pay off my student loans in 2017” change it to “I want to pay off my Salie Mae Loan #1 by the end of February.” That will force you to put your energy and money into Salie Mae #1 and you are more likely to pay it off in February.

In addition to having goals that are S.M.A.R.T it’s important to write them down as well. Don’t ask me why but when I write things down they are more likely to happen then not. I’ve also created an easy to use worksheet that has you write down your goals, determine the cost, and develop the action steps needed to accomplish them.

Also if you need help determining what your goals should be in the first place check out this short 10 video series I put together a few years back on taking control of your finances. The video are supposed to be consumed daily and feature small actionable steps to take to gain control of your money. They were designed for the year 2015 but apply to any year you do them in.

But what if you are listening to this after the beginning of the year. Can you still use these strategies? Of course you can, goal setting can happen at any time! It’s easier at the beginning of the year as January 1 is a good starting point for a fresh start. But it doesn’t have to be a certain date, you can start your goal journey at any time.

Below are some more resources on goal setting

Today's quote of the lesson is brought to you by Audible.com

“People with goals succeed because they know where they're going" ~ Earl Nightingale

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

January 3, 2017  

Thank you for your interest in purchasing the audio version of A Tale of Two Houses-Our journey of buying a home the right way after buying one the wrong way

I’m excited to release the audio version of A Tale of Two Houses and have included 10 bonus enhancement chapters, including:

  • Renting vs. Buying
  • Is a House an Investment or a Liability?
  • Three Things to Consider Before Buying a House
  • Where to NOT Get a Down Payment From
  • Seven Creative Ways to Come Up with a Down Payment
  • Getting Ready to Sell Our House with Guest Lisa White
  • We’re In Contract! With Guest Lisa White
  • Getting Ready to Move with Guest Lisa White
  • Wrapping Up the Whole Home Buying Experience with Guest Lisa White
  • The JW’s Manifesto on Money

The total time of the book is 4 hours and 50 minutes including the bonus enhancements.

(Get it FREE on Audible with a 30-day Free Trial)

To purchase through Podbean click on the “Buy single Episode Now” button at the top of this page. After purchasing the episode you can download the episode to your computer and use it as your leisure.

Currently the price to purchase A Tale of Two through Podbean is $6.99, which is the lowest price you’ll find it.

However, if you want to purchase it through iTunes, Amazon, or Audible to use through their interface you can do so as well.

You can also get the book free by becoming a member of Audible. Visit JWFinancialCoaching.com/Audible to sign up for your 30 day free trial.

(Get it FREE on Audible with a 30-day Free Trial)

In addition you can purchase the digital copy over at Amazon or Barnes and Noble.

Thanks for purchasing a copy of A Tale of Two Houses!

December 18, 2016  
00:0000:00
  • How Lisa and I spent more than we made in 2016
  • Why I felt that we were throwing money away left in right this summer
  • Why Savings is our future goal
  • What are goals are for 2017
  • Quote of the lesson from John Maxwell

 

 

As a financial coach and mentor, one of the main things I teach and show clients is the importance of living on less then you make. Yes it is a simple concept in theory, but in practice very few of us actually do it.

But there it was on our net worth statement for the end of November.

A decrease of over $10,000 in cash from January 1 through the end of November!

Today we discuss how that happened, why it happened, and most importantly why Lisa and I are actually ok with us spending more than we made in 2016.

We also breakdown why we are making savings a bigger goal in 2017.

But the encouragement today is that if you are a saver, you have the money saved, and the time comes to spend the savings on whatever . . . . don’t hesitate in spending the money, DO IT! It’s why you ultimately saved in the first place.

If you want to learn how to determine and ultimately reach your goals in 2017 please signup to receive the Goal Setting Spreadsheet that I will be sending out later this month.

Other Resources mentioned in this lesson:

Today's quote of the lesson is brought to you by Audible.com

“A budget is telling your money where to go instead of wondering where it went" ~ John Maxwell

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

December 11, 2016  
00:0000:00
  • Ways to spice up savings
  • The Pay Yourself First mentality of savings
  • How to realize that savings is actually future spending
  • Challenge yourself to save
  • Quote of the lesson

 

 

 

 

 

 

Savings vs. Spending. We can tackle this subject through a variety of lenses and as mentioned in the show we have. But today we are going to talk about it through a unique way that was helped inspired by a client I was working with a few months back.

The client wanted to save more money but wasn’t able to save as much as they wanted and instead was spending it on other areas. We tried to focus on ways to spend less in those areas, but for whatever reason it didn’t seem to work. So instead of focusing on where to spend less, we instead focused on where to “spend” more, and that happened to be “spending” more on savings.

To “spend” more on savings we had the client transfer money out of their main account into their savings account each day they got paid. That way the money wasn’t floating around in the main account looking to be spent.

It might seem like a psychological ploy but by having a “spending” goal of savings allowed the client to reach their savings goal and was able to feel more empowered with their finances.

In addition we also share some other good ways that you can employ to start to save more in 2017. Hard to believe that a new year is right around the corner, but this time of the year is always a good time to start to write down some your financial goals.

Other resources mentioned in the show

Today's quote of the lesson is brought to you by Audible.com

“Rich people stay rich by living like they're broke. Broke people stay broke by living like they are rich." – Unknown

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

December 1, 2016  
00:0000:00
  • Does who we hang out with impact our finances?
  • Keeping up with the Jones's is pressure we put on ourselves
  • How negative influences impact our finances
  • How positive influences impact our finances
  • Quote of the lesson from Jim Rohn

the-jws-financial-coaching-podcast_130

 

 

 

 

 

A few lesson’s back we shared how loaning money to family and friends can be a difficult situation to be in, both from a lender and borrower’s perspective. Well on today’s lesson we’re going to talk about friends and money but from a different angle.

It’s been said that you act like, earn about the same, and behave similarly to who you hang out with the most. With that being said then, do the friends we keep impact our finances?

I think we do, and they can be a powerful influence in how we make our money decisions.

The thing is though that when we talk about influences, they can be either a negative or positive influence. So this lesson is all about determining what a negative influence looks like and what a positive influence looks like.

The encouragement on today’s show it to look at your current relationships and see if they have either a positive or negative influence on your money. I don’t believe you should just cut off a relationship because it has a negative influence on your money.

However if there is a negative money influence on your life, instead of hanging out with that friend for a day at a time. You may need to hang out a hour at a time.

We also discuss how keeping up with the Jones’s is often a pressure we put on ourselves, instead of pressure put on us by friends.

Below are some Facebook groups that help propel me to good financial decisions and are a positive influence on my life

Resources mentioned in the show

Today's quote of the lesson is brought to you by Audible.com

You are the average of the five people you spend the most time with." – George Horace Lorimer

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

November 21, 2016  
00:0000:00
  • When to invest yourself and when to have the help of an advisor
  • Why invest yourself?
  • Why to enlist the help of an advisor
  • How an advisor can pay off
  • Quote of the lesson from George Horace Lorimer

Whenever I receive feedback from listeners of the show one of the main topics they would like to cover more is investing. I'm always a little hesitant to discuss investing because I am not a registered investment professional.

Yes I can speak to the differences between a ROTH and Traditional account, a 401(K) and an IRA, stocks vs. bonds vs. cash, and the importance of diversification. But not what specific investment is right for you.

I've attempted to learn more and self-educate, but the thing with investing is that if you search around people who are actually qualified, you'll see that it seems like everyone has a different approach to investing. This makes it hard to decipher which is the right way for you.

Of course there is no one right way, but how do you determine whether an investment is right for you or not? Today we are focusing on whether to invest yourself or hire a CFP or advisor to help you choose. Based on a recent study, it's about 50/50 on whether or not you invest or have an advisor help you.

When to Invest Yourself

For those of us who invest on our own, we mainly do it by default with our 401(K) at work. We have no clue what to invest, so we pick a few funds and let our co-worker tell us about what they invest in. But there are legitiment reasons to invest in yourself, some of the reasons include:

  • You have self taught yourself investing strategies
  • You have experience with investing
  • Have a level of comfort and understanding
  • Not going to be scared by down turns in the economy or market

When to Invest with an Advisor

  • Just starting out or you have no idea what you are actually doing
  • You find the topic investing very confusing
  • Very impulsive
  • Need help determine what your financial plans for the future are

Again to me, there isn't a one size fits all approach to investing. There are legit reasons to go at it alone and equally legit reasons to have some advice. Of course it will cost you something to invest with an advisor, but if you aren't investing or are investing in a product that is under performing, isn't it worth paying someone to help give you an even bigger return down the road?

Paying a fee isn't necessarily a bad thing, if it is helping you to invest more each year, increasing your rate or return, causing you to knock panic and withdrawl everything over a news event it it well worth it. The fee is bad however if the advisor is just filling out paper work and not really teaching you about investing.

Thing to Remember with Investing

Whenever we do invest in something, either on our own or with an advisor it's important to know

  1. Why you are investing in it
  2. What's the investment's goal and risks
  3. What is the investment's fee structure

If you know those things with investing you are well on your way. Again I don't think there is a right way or a wrong way. It all depends on your comfort level and knowledge of investing.

In the past Lisa and I have used an advisor to help us out with selecting funds, and we're not against doing it in the future.

Right now we investing primarily in low cost index funds on our own which keeps the costs down and makes whatever the market is doings. But that's just us.

My hope is this lesson provides you with knowledge to decide whether to invest on your own or hire an advisor.

Resources mentioned in the show

Today's quote of the lesson is brought to you by Audible.com

“It's good to have money and the things that money can buy, but it's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy." – George Horace Lorimer

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

November 13, 2016  
00:0000:00
  • The biggest inhibitor to winning with money is fear
  • How we saw this manifest in the election this week
  • How to discern between real fear and worry
  • Why fear shouldn't drive our financial decisions
  • Quote of the lesson from Zig Ziglar

the-jws-financial-coaching-podcast_128

On today’s special lesson of the show, I do an impromptu discussion on how fear is one of the biggest inhibitors of achieving financial success.

Today’s discussion was spurred on by the event’s this past week revolving around our election on Tuesday. When it became clear that Donald Trump was heading towards getting the magical 270 electoral votes needed the stock market futures, not the real stock market, dropped more than 750 points.

Of course then the next day on Wednesday the real stock market closed at an all time high. But it got me thinking to how fear drives so many of our financial decisions. Not just because of an election result but fear in our every day life.

A couple of things that we discuss today on fear and our money include

  • Stock Market
  • Credit Cards
  • Starting a budget
  • Changing careers

We’re all going to face fear at some point, it’s natural. But how do we differentiate between true fear and worrying about the worst case scenario? To me it is use judgement and test that fear. Am I afraid because I read something on Facebook or because I’ve thought it all the way through? Anytime I hear about the total collapse of _______ (Fill in the blank) I get skeptical. But I’ve realized personally that if I am doing something different to change my finances and I have some fear, the more I do that thing and get comfortable with it, the more the fear goes away.

My challenge to you today is to think about if there is any fear that you are facing that is holding you back financially?

If so why do you have the fear?

What is it preventing you from doing it?

What would be the positive result of you doing the action?

Below are resources mentioned in the show to help remove the fear from making changes with your finances:

Today's quote of the lesson is brought to you by Audible.com

F-E-A-R has two meanings: Forget Everything And Run or Face Everything And Rise. The choice is yours” ~ Zig Ziglar

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

November 6, 2016  
00:0000:00
  • Anyone else sick of the election and ready for it to be over?
  • Why Washington won't and can't change your finances
  • The importance of focusing on your economy
  • What you can spend your time focusing on instead
  • Quote of the lesson from Rory Vaden

the-jws-financial-coaching-podcast_127

Unless you are living under a rock, you know that the 2016 Presidential Election will all come to ahead this Tuesday when we will elect the 45th President of the United States of America. With that being said I think I speak for most Americans when I say that I’m ready for the election to be over.

But with that being said, voting for our leaders and issues on a national, state, and local level is an important part of democracy.

Today’s lesson though is about why Washington, or even your state for that matter, won’t and can’t change your finances. It’s nothing against them, but politicians can only adopt policy changes that can encourage you to make wise financial decisions, but it CAN’T force you to be smart with money.

You are the only one who can force you to

  • Develop a budget
  • Identify areas that you are weak that will cause over spending
  • Pay down your debt
  • Save for your retirement
  • Teach your children about

So whatever the result of Tuesday’s election is remember that it’s up to you to make wise financial decisions and even if you’ve been the problem, the good news is that you can become part of the solution.

Resources mentioned in today’s show

Today's quote of the lesson is brought to you by A Tale of Two Houses 

Success is never owned; it is only rented – and the rent is due every day” ~ Rory Vaden Take the Stairs

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

October 30, 2016  
00:0000:00
  • The most difficult loan to handle is the one from family and friends
  • Why we borrow from family and friends
  • The dangers in doing them
  • Why it is important to have to clear communication when lending to or borrowing from family and friends
  • Quote of the lesson

the-jws-financial-coaching-podcast_126

When I hear stories of people getting out of debt, the debt that gives them the most trouble is often a loan from a family member or friend. Giving or receiving loans from relatives or friends sounds like a good idea, but if you aren’t careful they can easily turn into a nightmare and easily lead to a ruin relationship.

Now most of you know I don’t recommend borrowing for anything, but what if you are already in the position of owing money to friends and family or are considering loaning money to a relative to help them get through a rough spot?

Today’s lesson we cover why it can be enticing to take out loans from family members and friends, discuss the dangers in doing them, how to handle these loans in the debt snowball, what happens if you can’t pay back a family member or friend, and a special discussion about co-signing and student loans.

Giving and receiving loans from a family member or friend occur often because it is easier to do then go to a bank or lending institution and go through all the paperwork and hassle. Perhaps you have bad credit and aren’t able to qualify for a loan from anywhere else. Or with low saving interest rates, you can make more by loaning it out to someone and get a better return than keeping it in a savings account in addition to “helping” out someone you care about.

However they often don’t work because since they are family or friends you don’t do the proper documentation and have a hand shake agreement. But after a few months go by, the “pay me back whenever” lender gets tired of not having his money back and seeing the borrower post on Instagram and Facebook about the nice dinner or vacation they just had. The leads to bitterness and resentment and at best leads to a strain in the relationship and at worse a total disolvement of the relationship and leading people to not talk for years.

In addition giving out a loan might not actually be a help to the individual, it might actually harm someone. Quite often these loans are given in a crisis situation due to a job loss or medical event and are used to not miss a payment on a car or mortgage.

But is this loan you are giving to them actually going to help their situation? Or is it just going to perpetuate the problem of poor financial management? That is something that needs to be considered before lending out money.

Since they cause a lot of strain on relationship I recommend treating them a little differently in the debt snowball. If I can move them up and pay them off sooner I would try. For example if you owe your in-laws $5,000 and have a $3,000 credit card balance I would try and pay off the $5,000 first, as long as you can make your own minimum payments. However if that loan from the in-laws is $20,000 I wouldn’t move it up the debt snowball.

What happens if you can’t pay? Well then you need to have clear communication with the lender and give them your entire financial picture and share why you can’t pay them at that particular time. Now this might be embarrassing to admit to them that you can’t pay. But it will help the relationship a lot more to sit down and be vulnerable instead of telling them “I’m working on it” and have no plan on how to actually do it.

With that being said I can’t recommend lending money to or borrowing from family or friends. The risk of running the relationship is too great.

Today's quote of the lesson is brought to you by A Tale of Two Houses 

Before borrowing money from a friend, decide which you need most.” ~ American Proverb

Enjoyed this lesson? If so, please consider taking a few minutes to leave a review of the show either in Stitcher SmartRadio, or iTunes. For a step by step video of how that works, please watch this video on how to leave a review in iTunes.

You can subscribe to future podcasts through Stitcher SmartRadio or iTunes, Google Play or by downloading the iPhone app. Or you may listen to the podcast on the JW's Financial Coaching Facebook Fan page.

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